Is Your Business Compliant With Your Modern Award?

If you’re running a business, it’s likely that you’re familiar with your employees’ entitlements. For example, you’d have to know about the National Employment Standards (NES). These standards set out minimum entitlements of every employee in Australia, regardless of what award they may be under. 

So, if your employees are under a Modern Award, what do you need to do as their employer?

What Is A “Modern Award”?

A Modern Award sets out minimum entitlements for employees, and there are different awards for different industries. You can find the award that applies to your industry using Fair Work’s Award Finder Tool. 

It sets out entitlements such as:

• Pay
• Hours of work
• Overtime
• Rosters

So, as the employer, it’s your responsibility to ensure that you are providing your employees with their entitlements under the Award that applies to them. It’s also important to note that these Award entitlements are in addition to the National Employment Standards. 

If your business is under a registered agreement, then the relevant award may not apply to your employees. However, this also depends on the terms themselves. For example, if the base rate of pay is lower than those in the award, the award entitlements will apply. 

How Do I Make Sure I’m Not Breaking The Law?

As an employer, you’ll firstly need to identify and understand what modern Awards, if any, apply to all the employees in your organisation. 

There are situations in which different modern Awards may apply to staff working in the same organisation, so be sure to check for each of your staff. You can check what modern Award applies to your employees through Fair Work.

It’s really important to take onboard the new changes, especially if you have an arrangement where you’re paying your employees an annualised wage. 

Crucially, remember to keep records of any overtime accrued, and clearly show your employees how you calculated their annualised salary arrangement. 

How Can I Ensure I Am Compliant?

As an employer, it can be difficult or overwhelming to stay on top of all your responsibilities to your employees. There are a number of workplace laws to be aware of, so it’s a good idea to seek legal help with this. 

At Sprintlaw, we offer an Award Compliance package where our lawyers help you remain compliant with the award that applies to your business. 

As part of the package, you will get:

•  A high level review of your employment contract
• A written summary of the key award provisions that apply to your business
• Phone consultations with a Sprintlaw lawyer who can answer your legal questions 

This package does not tell you whether an Award applies. If you need help determining whether an Award applies, please see our Award Determination package. 

Need Help?

Employers have a number of responsibilities to their employees in addition to the National Employment Standards. So, it’s recommended that you seek quality legal help to ensure you are compliant with the relevant provisions of the award that applies to your industry. 

If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Rowan Gardoce

Rowan is the Marketing Coordinator at Sprintlaw. She is studying law and psychology with a background in insurtech and brand experience, and now helps Sprintlaw help small businesses